Shinlund, Inc reported a net cash flow from operating activities of $243, 750 on its statement of cash flows for the year ended December 31, 2012. The following information was repoted in the Cash Flows

from Operating Activities section of the statement of cash flows, using the indirect method:

Decrease in income taxes payable $5,250.00

Decrease in inventories 13, 050

Gain on sale of investments 20,100

Increase in accounts payable 9,000

Increase in prepaid expenses 3,600

Increase in accounts receivable 9,750

a. Determine the net income reported by Shinlund, Inc., for the year ended December 31, 2012

b. Briefly explain why Shinlund's net income is different than cash flow from operating activities.